Charlotte Church has not yet settled her phone-hacking case against Rupert Murdoch's defunct tabloid the News of the World, her manager says – despite suggestions a deal was close to being reached.

His comments follow a report in the Financial Times that News Group Newspapers was likely to offer up to £500,000 in damages and costs to the singer with damages element set at about £180,000.

The case was due to go to full trial on Monday along with five others but NoW parent company News International has so far settled all other cases.

However, Church's case remains outstanding amid an acrimonious behind-the-scenes legal battle with the publisher. Those close to the situation say reports of a settlement with News International are "optimistic".

Church's manager, John Vernile, said: "We've been attempting to try to resolve things in good faith, we are definitely not resolved. It's not resolved until it's resolved; I can't say anything more."

Church is one of 60 litigants ranging from Jude Law to John Prescott who sued NGN in relation to invasion of privacy because of phone hacking and News International has so far paid out in 54 cases. It was expected to try to settle this case, coincidentally due to be heard a day after Murdoch launches his new newspaper, the Sun on Sunday.

Church's case was one of six "lead" cases due to be heard by Mr Justice Vos on Monday. Vos wanted to hear the lead cases to create a benchmark for compensation payable by News International in the event of future action being taken by any of the 800 people identified by police as likely to have had their phones hacked by the News of the World's private investigator Glenn Mulcaire.

Each of the cases was a sample from six categories of victims ranging from celebrities to crime victims to sportspeople such as the jockey Kieren Fallon who was also picked out as a "lead" case but agreed to settle earlier this month.

Church alleged that 33 articles had arisen from phone hacking and was seeking punitive or "exemplary" damages for the distress caused to her and her family. Her case was expected to be one of the most damaging for NGN because it alleged phone hacking over a long period of time.

At a pre-trial hearing earlier this month News International's counsel, Michael Silverleaf QC, said there would be much "debate" over her claims that her mother's mental health and her parents' pub business had been impaired by the behaviour of the News of the World.

He sought to get a medical evaluation of her mother, Maria, and analysis of her husband James's financial affairs. Church alleged that her stepfather had to sell the Robin Hood pub because of the constant harassment by News Group reporters. Silverleaf argued there was no proof.

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